DRESDEN, Germany May 28 (Reuters) - The head of the
International Monetary Fund warned that Greece could fall out of
the euro zone as it struggled to sort out its debt stand-off,
which is adding to concern about the patchiness of global
economic recovery.

The finance chiefs of most of the world's biggest economies
met in Germany against the backdrop of Greece's unresolved
crisis, rising oil prices and volatility in financial markets.

Japan's finance minister expressed concerns about a "rough"
fall in the value of the yen to its lowest level against the
U.S. dollar in more than 12 years, reflecting the contrasting
outlooks for some of the world's big economies.

Greece was not officially on the agenda of the Group of
Seven meeting on Thursday in a former palace in the eastern
Germany city of Dresden.

Policymakers listened to leading economists spell out ways
they could finally shake off the effects of the global financial
crisis which struck nearly eight years ago.

But with a payment deadline looming next week, the Greek
crisis was high on the minds of policymakers.

Christine Lagarde, the IMF's managing director, a key player
in the negotiations alongside the European Union, warned that
the talks could yet fail, forcing Greece into a debt default and
an exit from the euro zone.
Continued...